HFT and "dark pools" prepare for a difficult year ahead

The combination of increased regulatory pressure and a lack of transparency may lead traders away from high-frequency trading and "dark pools," according to some in the industry. David Mechner, CEO of Pragma, said: "There's increasing concern that off-exchange volume is having a negative effect on the market." Traders are becoming increasingly leery of the perceived conflicts of interest that dark-pool operators will face.